3 advantages of a debt collection software
The late payments that small and medium-sized companies suffer from hinder their development. To solve this problem that plagues the majority of structures, debt collection software has been developed. What are the benefits of this software? This article provides information on the subject.
The reduction of DSO (Days Sales Outstanding) and administrative costs
One of the first benefits of implementing a debt collection software is the reduction of DSO. The latter is an indicator of the efficiency of the collection department. It allows you to measure the time it takes to settle your receivables. It also facilitates the follow-up of invoice payments via scenarios that ensure the automatic dunning of customers according to a predefined segmentation. You can consult this site to learn how the dso calculation.
The automation of these tasks reduces the workload of your teams and the administrative costs. To benefit from the implementation of this management system, you can opt for an online solution.
Risk forecasting and anticipation
The debt collection software is programmed to perform sharp financial analysis on your customers. It helps you easily identify insolvent ones and offer them adequate payment terms. This solution will allow you to limit your risks, reduce potential disputes and recover your money faster.
It will also protect you from re-entering amounts on invoices. Automatic alerts are also issued to encourage timely payment of the invoice. This software thus offers you the opportunity to establish a more qualitative communication with your customers.
Have better visibility into your outstanding receivables
The debt collection software also informs the boss of the VSE/SME about the outstanding customer in real time. Through a synthetic dashboard, this software offers a global visibility. This allows to consult the cash flow status at any time. This system also offers detailed customer files. These give you the possibility to consider the necessary actions to rectify a situation at risk.